[Anonymous]

Quick question about CPA firm ownership. The Becker book states that in order to designate the firm as “xx, Certified Public Acountants,” all owners need to be CPAs. Then there is a subsection titled ownership of CPA firms and states that a majority of the owners (over 50% or 2/3 to be safe) must own (in voting rigs and financial interests) the firm. However, it states non CPAs can be owners but cannot hold themselves out to be CPAs and should own their own equity. This sounds like it contradicts that all owners should be CPAs. Can someone explain this to me. Thanks.

[Tncincy]

Well, this is an interesting conversation……..especially for non-CPA's (lol)

Non-CPA's can have a minority (49%) ownership in a firm, however, they CANNOT use a non CPA in the name of the firm, neither can they be listed in the yellow pages or similar under CPA heading. They also must be active participants in the firm, not a silent partner.

The name(s) of non-CPA owner(s) may not be used in the name of a CPA firm. The CPA

firm name may not use the terms “and associates” or “and company” unless the CPA firm

has a minimum of two CPA partners in addition to the non-CPA partner(s).

A CPA firm with non-CPA ownership is permitted to practice through a partnership,

limited liability partnership, professional corporation, or professional limited liability

company.

It begins with a 75
Been here too long as a cheerleader....ready to pass

[Author]

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